Being a little cautious can help in pulling the strings and thus enable you to manage your money in a much better fashion and of course enjoy the festivities.
To fill a pitcher and to ensure that it remains filled up while not in use, the first thing needed is to plug the leaks. So, to have some money left for investments, you need to curtail unnecessary spending, so that you may save more.
“Managing finances, especially during festivities can turn out to be challenging, given that we tend to indulge ourselves. However, being a little cautious can help in pulling the strings and thus enable you to manage your money in a much better fashion and of course enjoy the festivities,” by Aditya Damani, Founder, Credit Fair.
Damani suggests the following steps to control your spending urges:
Differentiate between Need Vs Want
The foremost step towards curtailing your spending urges is to focus and distinguish between needs and wants. If we need something – it implies that we cannot probably do without it. On the other hand, “Want” implies that we can do without it; keeping these two aspects in mind—focus on what we need and then go about buying accordingly. Changing our mental perspective in terms of buying is extremely crucial.
Loan for shopping, but should we?
There will also be loan offers coming for buying , the best way to borrow to buy, If you are genuinely bent on shopping and probably have a long list of things-to-buy or things-to-gift, then it is advisable to opt for No-Cost EMIs that are on offer.
Use Credit Card judiciously
If you are a savvy shopper, you must have accumulated a whole lot of reward points through your credit cards. Those who haven’t splurged their reward points on things like upgrades or travel, might want to consider the points while making their holiday or festival shopping this year.
Managing finances during the festival season can get cumbersome at times. This is because we often end up spending more than we think. Let’s take an example here – say an individual has spent Rs 1 lakh on his credit card and does not have enough cash to pay off the bills. So, how does he go about managing? Well, in such a case, one can either choose to pay the minimum amount due and then gradually clear off the debt at a much higher interest – say around 36 per cent. On the other hand, one can choose to avail a personal loan for debt consolidation loan with an interest of 14 to 16 per cent, and clear off all the accumulated debt.